A Report from the Marketing Department Indicates That a New

question 104

Multiple Choice

A report from the marketing department indicates that a new product will generate the following revenue stream: $62,500 in the first year,$89,400 in year two,$136,200 in year three,$128,300 in year four,and $112,000 in year five.If your firm's discount rate is 11% and the cash flows are received at the end of each year,what is the present value of this cash flow stream?

• A) $379,435.35
• B) $421,173.24
• C) $476,036.04
• D) $528,400.00

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Definitions:

Resistance

The opposition to the flow of electric current or other forms of energy, or in biology, the ability of organisms to withstand disease, drugs, or environmental conditions.

Abrasion

A wound caused by superficial damage to the skin or a mucous membrane, resulting from rubbing or scraping.

Areolar Tissue

A type of loose connective tissue that provides both elasticity and support, found throughout the body binding organs and tissues together.

Lamina Propria

A layer of connective tissue found beneath the epithelium in mucous membranes, providing support and nourishment.